Forecasts
Super Micro Computer Inc. (NASDAQ: SMCI) stock has its bullish supporters, some of whom feel it can withstand global trade issues and may be one of the best artificial intelligence (AI) stocks this year. But it is also a target of short sellers, with nearly 23% of shares held short. Goldman Sachs recently downgraded the stock to Sell.
-
Explosive demand in the IT services industry has bolstered Super Micro Computer Inc.’s (NASDAQ: SMCI) stock performance.
-
24/7 Wall St. sees plenty of room for shares to run through the end of the decade.
-
If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.
The artificial intelligence-fueled tech rally has sputtered as tariff concerns have grown, but it is likely to continue at some point. Companies that can diversify to address the manifold demands the industry faces ultimately are poised to profit. Supermicro is one of those companies. The San Jose-based tech firm specializes in high-performance and high-efficiency servers, but it also provides software solutions as well as storage systems for data centers and enterprises focusing on cloud computing, AI, 5G, and edge computing.
Supermicro recently appointed a new board member with a financial background, and it promoted a new general counsel from within. AI stocks in general have felt the effects of trade war concerns, and Supermicro’s margins have come under pressure. It aims to shrink its margins to increase production capacity to meet demand. Earlier in the year, the company said it was expanding its manufacturing capacity in the United States, Taiwan, and Europe to meet increasing demand, particularly for liquid-cooled data center solutions.
Nonetheless, analysts continue to expect big upside potential for the tech stock. Hindsight is 20/20, and all that matters now is how Supermicro will perform going forward. So 24/7 Wall St. has undertaken analysis to provide investors — and potential investors — with an idea of where this stock could head over the next five years.
Supermicro’s Recent Performance
Shares of Supermicro have been particularly rewarding to shareholders in the recent past, as they exploded by gaining 3,096% in the five years between August 2019 and August 2024. The following table summarizes Super Micro Computer’s share price, revenues, and profits (net income) from 2014 to 2024:
| Year | Share Price (pre-split) | Revenues* | Net Income* |
| 2014 | $36.39 | $1.467 | $.054 |
| 2015 | $24.66 | $1.954 | $.092 |
| 2016 | $28.05 | $2.225 | $.072 |
| 2017 | $20.93 | $2.484 | $.067 |
| 2018 | $13.90 | $3.360 | $.046 |
| 2019 | $24.65 | $3.500 | $.072 |
| 2020 | $31.66 | $3.339 | $.084 |
| 2021 | $43.95 | $3.557 | $.112 |
| 2022 | $82.19 | $5.196 | $.285 |
| 2023 | $284.26 | $7.123 | $.640 |
| 2024 | $304.80 | $14.940 | $1.210 |
*Revenue and net income in $billions
In the past decade, Supermicro’s revenue grew by more than 385% while its net income increased by just over 1,085%. Despite seeing a minor revenue contraction in 2020 with a decrease of 4.6%, its shares still managed to increase year-over-year on still-growing net income. As the IT services provider looks forward to the second half of the decade, we have identified two key drivers that are likely to have an impact on its growth metrics and stock performance.
Key Drivers of Supermicro’s Stock Performance
Enormous Industry Growth
According to Statista, global revenues generated by the IT services industry are $1.420 trillion. Looking forward, that figure is forecast to balloon to $1.879 trillion worldwide by the end of 2029, which is good for a market increase of 32.32%. Most of this growth will be driven by demand for services and solutions that support AI, but other drivers include digital transformation and cloud IT infrastructure — both of which are major business segments for Supermicro. The company has a global reach, with more than half of its revenue being produced from outside of the United States, meaning it will play a central role in meeting that global growth demand.
Shrinking Margins to Increase AI Production Capacity
Supermicro finished the fiscal year 2024 with a sizable reduction in its margins. And while investors would usually interpret that negatively, it makes perfect sense for the company. In 2024, gross margins shrink to 14.2% from 18.1% in fiscal 2023. The main driver is increasing production of its server solutions to deploy AI graphics processing units (GPUs) — like those produced by tech behemoths Nvidia Corp. (NASDAQ: NVDA) and Advanced Micro Devices Inc. (NASDAQ: AMD).
As a result, the company is positioning itself for growth alongside increased demand for GPUs, which ultimately will cause Nvidia and AMD’s successes to trickle down to Supermicro. Most recently, 70% of Supermicro’s revenue was from sales of its GPU server solutions for AI implementation. The market for direct liquid cooling (DLC) servers — which Supermicro provides — is expected to grow from $5 billion in 2024 to $21 billion in 2029.
Supermicro Price Prediction in 2025
The current consensus median one-year price target for Super Micro Computer is $52.19, which represents 60.3% potential upside over the next 12 months. The 14 analysts covering Supermicro stock have a consensus Hold recommendation. Just four of them have Buy ratings.
24/7 Wall St.’s 12-month forecast projects Supermicro’s stock price to be $68.34, based on projected earnings of $3.35 per share in 2025.
How Supermicro’s Next Five Years Could Play Out
| Year | Revenue* | Net Income* | EPS |
| 2025 | $28.265 | $1.974 | $3.35 |
| 2026 | $31.634 | $2.548 | $4.31 |
| 2027 | $37.116 | $1.458 | $5.49 |
| 2028 | $42.631 | $1.881 | $6.76 |
| 2029 | $50.154 | $2.428 | $8.49 |
| 2030 | $59.005 | $3.134 | $10.62 |
*Revenue and net income in $billions
At the end of 2025, we expect to see revenue, net income, and EPS rise by 89.16%, 63.41%, and 70.08%, respectively. That would result in a per-share price of $68.34 on a post-split-adjusted basis, which is 109.9% higher than where the stock is currently trading.
When 2026 concludes, we estimate the share price to be $79.87, which is 156.6% higher than where shares are trading today. This is based on modest revenue gains, an assumed EPS of $44.37, and a healthy projected P/E ratio of 18.
At the conclusion of 2027, we forecast a sizable jump in the stock price to $86.13 driven by $37.116 billion in revenue and $1.458 billion in net income, which will result in shares trading for 176.8% higher than the current share price.
By the end of 2028, we expect to see shares trading for $101.40, or 225.8% higher than the stock is trading for today, on revenues of $42.631 billion, net income of $1.881 billion, and an EPS of $67.60.
Prediction: Super Micro Will Hit $100 in 2025
And at the end of 2029, Supermicro is forecast to achieve revenue of $50.154 billion and net income of $2.428 billion. That results in a per-share price of $118.86, which is 281.9% higher than the stock’s current price.
By the conclusion of 2030, we estimate an SMCI share price of $138.61, good for a 345.4% increase over today’s share price, based on an EPS of $106.62 and a P/E ratio of 13.
| Year | Price Target |
| 2025 | $68.34 |
| 2026 | $79.87 |
| 2027 | $86.13 |
| 2028 | $101.40 |
| 2029 | $118.86 |
| 2030 | $138.61 |
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.